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Prepared by StratagemTRADE.com and Scott
Writing under the nom de plume of J.L. LORD

Friday | August 21, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: August 20

Wednesday afternoon, the Fed released the minutes of its meeting. As has been its tradition, like eggnog at Christmas and hot dogs at baseball games, the market sold off. Another recent tradition is that there is follow through the next morning as well. We were not disappointed by a lack of presents under the tree this time – the markets opened lower.

The market opened at its lows – SPX 3354.69 (-20.16). After the first 30 minutes, the market slowly climbed its way back to near the unchanged line of 3375. We sat in suspended animation all day hugging the unchanged line until the last 2 hours of trading. Despite AAPL and TSLA moving higher and higher, the market sat quietly ignoring the two leaders.

The last two hours saw the market then start to climb, albeit slowly. The adage “never sell a dull market” certainly held weight yesterday. Near the close, the SPX made its way above the previous 3383 resistance line, and got up to 3390.80. This was very close to the previous all-time highs set last February before the corona changed our lives.

CLOSE

The last few minutes brought some sellers. Why not sell the all-time highs? The SPX settled at 3385.61 (+10.66). AAPL was also higher by $10 points, but at 473.10, it is a much smaller share price. TESLA is a beast closing at 2001.83, another 6.56% higher. AAPL is now a $2 trillion company.

Remember just a couple of years ago, people were questioning if it could be a $1 trillion company? With all the innovation of different size screens for their phones (lol), it was inevitable. Imagine if they actually came out with a new product since Steve Jobs died.

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TODAY: August 21

TODAY – Strong again.

LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off – probably after the election (This one has been here for WEEKS. Nothing changed).

In yesterday's Morning Coffee Report, I stated that we would open weak, and then get strong again. We opened weak, and climbed.

We need a close above 3400 to scare those on the sidelines to get in.

NEXT BIG DAYS:

Sept 29 – Presidential debate #1
October 15 – Presidential debate #2
October 22 – Presidential debate #3

I am still standing by my prediction (made December 31, 2019) that we will be positive for the year and making new all-time highs by the end of the year. I maintained this stance even when the SPX was down -36% for the year (this has been here since January 1).

S&P 500 Price Limits

From 8:30 a.m. to 2:25 p.m. CST, there are successive price limits corresponding to 7%, 13%, and 20% declines below the previous trading day’s reference price.

From 2:25 p.m. until the 3:00 p.m. CST close of the cash equity market, only the 20% price limit will be applicable.

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(4.79% so far)

POT Logo

Wednesday night's recording: There was a problem with technology all this week. TOS was down on Monday and Tuesday. Wednesday Skype and Gmail, as well as others, were glitchy. We just found out the recording for POT was cut in half when many companies experienced a late night glitch. Anyhow....I will have to redo the second half of the POT class today or tomorrow. Our apologies go out for the headache. It was beyond our control.

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DISCUSSION BOARD

Up and Running for POT students (so far).

Really quickly...

To help in your quest for the best possible options trading outcomes, we would like to know what level of options trading knowledge and skills you currently have. Please click the button below to indicate what level of trader you are? Please skip if you already responded. Thank you for participating.

P.O.T. Schedule

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LAUGH OF THE DAY

Trading is a tough job on a stomach void of coffee and humor.
You provide the coffee and we will take care of the rest.

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Disclaimer

For education purposes ONLY. Please read the disclaimer below. We do not care if you agree or disagree with it—that is the rule. ​​​Stratagem Trading (Stratagem: “StratagemTrade.com,” “Stratagem”), and any of its possible affiliates, respective independent contractors, employees, officers, or agents are not acting as licensed financial advisers, registered broker-dealers,tax advisers, etc. (although some individuals may or may not hold a license). Furthermore, they do not provide financial advice, make recommendations, or conduct business by transacting trades. Stratagem Trading adamantly states that nothing in this communication constitutes a solicitation, promotion, endorsement, offer or recommendation to buy or sell any investment, mutual fund, debt instrument, commodity, derivative product or security as described herein.

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